Fiduciary Tax Returns

What is a fiduciary?

A fiduciary is a person or business with the power to act for another and the responsibility for managing the assets and income of an estate or trust. A fiduciary may be a trustee, an administrator of an estate, a business adviser, attorney, guardian, real estate agent, banker, stockbroker, or title company.

Who must file a Fiduciary Return (form D-41)?
File a D-41 if you are the fiduciary of a DC estate or trust and:

  • The gross income for the estate is $1,675 or more for the taxable year; or
  • The gross income for the trust is $100 or more for the taxable year.
  • Do not file a D-41 if you were appointed by a judge to receive a trust or estate and represent only a part of the property of an individual.

What are other DC tax forms that a fiduciary may need to file?

  • INDIVIDUAL INCOME TAX (D-40 or D-40EZ): A fiduciary who is responsible for the income of a DC resident, such as a minor (or someone else unable to administer his or her own assets), must file an individual income tax return for that person in addition to the Form D-41.
  • D-40 FOR A DECEASED PERSON: A fiduciary must file a D-40 for the last taxable year of the deceased person.
  • D-30 UNINCORPORATED BUSINESS FRANCHISE TAX RETURN: A D-30 return must be filed by a trust located outside DC which has gross income in excess of $12,000 from DC rental and/or from other taxable DC trade or business property.

If the business is terminated, gain or loss is reported by the owners (if they are outside DC) to the jurisdiction of their domicile. A D-30 must be filed to report any depreciation recapture.

Inheritance Taxes

What is an inheritance tax?
The DC inheritance tax imposed under Chapter 19 of Title 47 of the DC Code is one based on the right to receive assets as a result of a decedent’s death.  An Inheritance Tax Return is required for estates of decedents whose deaths occurred prior to April 1, 1987.

Who must file and when?
Every beneficiary of assets with a taxable situs in DC and with a value in excess of $1,000 must file an Inheritance Tax Return (Form FR-19) showing what the decedent owned, and Inheritance Tax Return Distribution Schedule (Form FR-19A) showing to whom such net assets are distributable within 15 months after death.

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